8 Best Performance Management Tools To Enhance Productivity

Studies by WTW show that effective performance management increases employee productivity by 1.3X and financial performance by roughly 1.5X. 

Organizations are turning to innovative and effective performance management tools that contribute to organizational development and employee recognition, encourage continuous feedback, and tap into the power of data-driven insights to achieve such results. Here are the eight best solutions you can find on the market now.

Criteria for choosing performance management tools

To choose management tools that align with your organization's goals, management processes, and business strategies, consider the following criteria:

1. Features and functionality

Some important performance management features include goal setting, feedback loops, analytics, and performance appraisal—impacting interactions and fostering employee growth.

2. User-friendliness

HR teams should be able to easily integrate a performance management solution into their working routine and make it simple for the employees to fill in the forms.

3. Integration and compatibility

Seamless integration with platforms like Slack, Microsoft Teams, and Google Workspace ensures smooth access and sustained engagement.

4. Customization

Customizable workflows enable organizations to tailor the tool to their unique needs, creating a more personalized and effective performance management system.

5. Data and analytics

Data-driven insights provide a deeper understanding of employee performance trends, helping HRs and business leaders make informed decisions and targeted improvements.

6. Scalability and flexibility

The chosen tool should scale as your organization grows, accommodating increasing user numbers and evolving needs.

7. Support and training

Responsive customer support and comprehensive employee training resources ensure a smooth implementation process and ongoing usage.

8. Cost

Balancing the performance review software with its cost ensures that your organization receives optimal value for its investment.

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Top 8 performance management tools

We've carefully selected the top eight tools that enhance team productivity. Let's check the specifics of each tool to empower your decision-making.

1. Peoplelogic

Peoplelogic stands out among performance management tools for its wide range of features that drive employee engagement, growth for SMBs and promote a high-performing culture. It offers free onboarding and staff training programs, making performance management less stressful and more effective. 

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Key features

1. Goal-setting with OKRs for team alignment.
2. Growth plans for personal and career development.
3. Integrations with tools for efficiency and enhancing workflow.
4. Performance reviews and feedback cycles, eliminating complex paperwork.
5. Peer-to-peer feedback to foster employee progress and constructive growth.
6. Employee surveys and insightful analytics to boost engagement and reduce stress. 
7. One-on-one conversations through scheduled check-ins and predefined agendas.
8. Praise through 360 degree review, performance appraisals, and acknowledgment.
9. Comprehensive dashboards and analytics reports to unearth trends and decrease attrition.
10. AI-powered precision: HR managers can use AI to boost team performance and for rapid report analysis, intelligent goal suggestions, and valuable organizational insights.

Pros

• 24/7 support
• AI-powered insights
• User-friendly interface
• Customizable workflows
• Ongoing real-time feedback 

Cons

Users unfamiliar with performance management software might find the initial setup hard. But Peoplelogic offers comprehensive, easy-to-follow resources to make you well-versed with the platform.

Pricing model

Peoplelogic adopted a cost-effective pricing model. In addition to a generous 14-day free trial, Peoplelogic offers three plans:

• Impact – $399/month ($299 when billed yearly). A comprehensive suite of AI-enabled performance management tools with unlimited users.
• Optimize – price available upon request. Access additional organizational intelligence and AI tools.
• Complete – price available upon request. People process and technology optimization tools.

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2. 15Five

15Five is a performance management software helping teams work better and remain engaged. The platform is simple to set up and use, increasing adoption and change management with features your team can use from the first setup. 

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Key features

1. Align and focus teams with OKRs.
2. User, role, and access management.
3. Reporting, dashboard, and survey analytics.
4. Integration with tools to amplify operational efficiency.
5. Customization in training and coaching programs, fostering growth and skill development.

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Pros

• Regular check-ins 
• User-friendly design
• Integration with popular communication tools

Cons

Users have reported issues with adaption time and integrations and considered the pricing high.

Pricing model

15Five offers 4-tiered pricing for scalability, ensuring you pay for what you need.

• Engage: $4/user/month
• Perform: $10/user/month
• Total Platform: $16/user/month
• Transform: $99/manager/month 

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3. Betterworks

Betterworks takes a strategic approach by aligning individual and team goals with organizational objectives. This performance management tool is designed to help leaders improve employee performance through seamless goal-setting and ongoing employee feedback. 

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Key features

1. Goal setting with OKRs for a focused result.
2. One-on-one check-ins to foster unity between managers and team members.
3. Data-driven insights to gain clarity and understand how efforts impact overall success.
4. Recognition-centric employee feedback to enhance motivation and goal-centeredness.
5. Conversations encompass coaching, career growth, and an impactful performance review process.
6. Integrations with G Suite, Microsoft Teams, Slack, Salesforce, and more via API, Gmail, and Outlook.

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Pros

• Robust analytics
• Strategic alignment with OKRs
• Integrated approach to the performance management process

Cons

• Implementation may require initial training
• Difficulties integrating with MS Teams

Pricing model

Betterworks doesn’t offer pricing information on the website – you can receive it upon request.

4. ClickUp

ClickUp is an all-inclusive performance management system designed for teams across diverse industries. You can strategize, monitor, and cooperate on projects while perfectly tailoring workflows.

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Key features

1. Integration with popular tools to streamline workflows.
2. Merging tasks, goals, time tracking, and progress monitoring.
3. Real-time reports to create and monitor insights on employee performance.
4. Free and customizable templates for teams to save time and stay consistent. 
5. Collaboration and alignment are enhanced by managing tasks and performance within one platform.

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Pros

• Combines project management and performance tracking
• Unified platform simplifies collaboration
• Customizable interface

Cons

Users have found: 

• Usage complexity
• Chat features non-responsive
• Difficulty in integrating IT assets

Pricing model

ClickUp offers a variety of pricing plans to suit teams of different sizes.

• Free Forever plan
• Unlimited Plan at $7/user/month
• Business Plan at $12/user/month
• Enterprise Plan at a custom pricing

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5.  Reflektive

Reflektive is a popular employee performance management software covering multiple modules—

• Goal monitoring
• Employee feedback
• Employee recognition
• Employee engagement surveys

Its performance evaluation process boosts productivity, employee satisfaction, and employee retention. 

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Key features

1. Comprehensive suite has real-time feedback, performance review, and data analytics for a holistic view.
2. Real-time feedback enhances employee growth.
3. Integration with tools for streamlined workflows.

Pros

• Employee engagement through NLPs
• Robust analytics for engagement insights
• Instant feedback culture drives continuous growth

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Cons

Compared to other performance management tools, its expensive pricing makes it out of reach for smaller businesses.

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Pricing model 

Reflektive offers pricing information upon request. 

6. Lattice

Image source: G2

Lattice is a comprehensive performance management platform with a keen focus on people management. It helps companies optimize the performance of their workforce thanks to such features as 1:1s and goal tracking. It also provides analytics and employee engagement tools.

See also: Lattice competitors

Key features

• Performance management to offer real-time feedback, optimize the review process and, streamline goal setting.
• Career development to help employees develop skills and competencies thanks to constructive feedback and 1-on-1s.
• Employee engagement to improve employee satisfaction and retention.
• People analytics for an in-depth look at key data to better understand the workforce driving decisions.
• Integrations with Salesforce, Workday, Jira, Slack, Outlook, etc.

Pros

• Intuitive, user-friendly solution
• Comprehensive feature set
• Solid integration options
• Good analytics

Cons

• It can be overwhelming and hard to learn
• Some users complain about bugs

Pricing model

Lattice offers several plans:

1. Performance Management + OKRs & Goals. The basic package at $11/user/month
2. Engagement at $4/user/month
3. Grow at $4/user/month
4. Compensation at $6/user/month

Image source: Lattice

7. Leapsome

Image source: Capterra

Leapsome is a powerful performance management solution that offers nice automation capabilities and a suite of useful tools, such as OKRs, employee management, performance management, learning tools, etc. 

See also: Leapsome competitors

Key features

• Performance management. Optimize your employees’ performance and help them achieve the best results.
• Learning features. Provide your people with tools that facilitate training and new skill development.
• Employee engagement. Improve the satisfaction and engagement among your employees and leaders.
• Automation features. Streamline and automate key processes in your company.
• OKRs. Find common goals and align your entire team around them.
• Integrations. Connect with Paychex, Sage, G-Suite, Slack, MS Teams, etc.

Pros

• Solid automation
• Nice learning and development tools

Cons

• It might be too complex for some users

Pricing model

With Leapsome, you can buy only the modules you want. Unfortunately, the website doesn’t present pricing details.

8. BambooHR

Image source: G2

BambooHR is a performance management solution for small to medium-sized businesses. It helps them streamline HR processes, gathers essential data in one place, and provides hiring, onboarding, reporting, and performance optimization tools.

See also: BambooHR alternatives

Key features

• Employee database and records. Access all your essential employee data in one place.
• Performance management. Set transparent goals and track them with ease, collect peer feedback, and conduct reviews.
• Time-off tracking. Easily track employee leave, PTO, etc. 
• Hiring and onboarding. Use onboarding checklists, applicant tracking, and electronic signatures to simplify and improve HR processes.
• Analytics and reporting capabilities. Review key information regarding salaries, turnover rates, etc., and create reports.
• Integrations. Integrate with Okta, Slack, NetSuite, Gifted, Nectar, PayScale, Indeed, etc.

Pros

• Powerful performance management solution with a rich feature set
• Solid support
• Easy to learn

Cons

• It might be too robust for smaller companies
• Limited customization options

Pricing model

BambooHR has two pricing plans – Core and Pro. Pricing information is available upon request.

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Performance management tools: comparison table

The best performance management tool: conclusion

Choosing the right performance management tool is crucial to improving employee engagement and creating a high-performing company culture. The tools we’ve shown you here transform employee engagement and encourage growth, ultimately boosting company productivity. They are similar in many ways, but there are some key differences, like integration options, usability, and pricing. 

With its varied features, customization options, and AI-driven insights, Peoplelogic stands out from other employee performance management tools in this list and redefines your approach to performance management techniques. Sign up for a demo and take the first step towards creating the best performance reviews.

FAQ

What are employee performance management tools?

Employee performance management tools are software solutions that help organizations manage and evaluate employee performance. These tools offer a range of features that help HR managers align employee objectives with organizational goals, evaluate performance, provide feedback, and recognize employee achievements. Some of the common features of employee performance management tools include:

• Goal setting tools
• Performance evaluation templates
• Coaching and feedback tools
• One-on-one meeting scheduling tools
• Feedback collection tools
• Rewards and recognition tools

What are the 3 practices of best performance management software?

1. Clear and SMART goals
2. Regular ongoing feedback to facilitate continuous improvement
3. Employee skill development and growth to align with organizational goals

What is a strategic performance management strategy or tool?

The solution aligns individual and team performance with business strategy. This performance management tool uses data insights to drive informed decisions that accelerate organizational success.

What is a performance management tool?

A performance management tool is a piece of software that allows you to manage and optimize your workforce’s performance by setting transparent goals, improving performance reviews and 1:1 meetings, etc. Such systems usually also provide a host of other options, including HR database or analytics.

What are the 5 areas of performance management?

The 5 areas of performance management are:

• Planning
• Monitoring
• Developing
• Rating
• Rewarding

How do you measure performance management?

You can set measurable goals and OKRs and define KPIs. Another option is collecting feedback via reviews, surveys, and 1:1s.

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